The government's Employment Bill has divided employers and employees with its proposals to modernise the world of work.

The key provisions, which will come into force in April 2003, include:

Ordinary maternity leave is extended from 18 weeks to 26 weeks. Statutory maternity pay (SMP) and maternity allowance are also extended to 26 weeks. SMP will remain at 90 per cent of pay for the first six weeks, but the flat rate for the remaining period goes up to £100 per week. Additional maternity leave will be set at up to 26 weeks, so the maximum possible maternity leave will be a year.

The bill also introduces two weeks paternity leave and two weeks statutory paternity pay at the same rate as SMP and a right to 26 weeks adoption leave and statutory adoption pay at the same rate as SMP. Additional adoption leave of a further 26 weeks will be subject to longer service. Where a couple adopts, one spouse may take adoption leave and the other may take two weeks paternity leave.

Reimbursement by the government of maternity, paternity and adoptive payments made by employers, with small employers receiving 100pc reimbursement plus a bonus payment on top.

However, the most controversial changes relate to unfair dismissal cases, including giving tribunals powers to order costs directly against a party's representative on the grounds of the way in which they have conducted the case, and the power to order that one party makes a payment to the other in respect of time spent in preparing their case.

The bill provides for determination without a hearing where both parties consent in writing, and for tribunals to have the power to strike out very weak cases at a pre-hearing review rather than order a deposit.

The use of questionnaires in equal pay cases, and for paid time off work for union learning representatives. Further, the Secretary of State is given the power to introduce regulations to implement the Fixed Term Workers Directive and prevent pay and pensions discrimination against those in fixed-term employment.

Fixed-term contract workers will now be eligible for similar pay and pension rights to their permanent colleagues. However, the government's definition of who is covered by the new rule is set to cause further debate. The EU directive which provides the basis for the proposals uses the broad term of "worker" rather than the government's narrower definition of "employee".

Lobbying from the TUC and the CBI is set to continue over the fine detail of the proposals.

Tony Blair, the prime minister, recently pledged there would be "no new ramp of employment legislation taking us back to the 1970s".

House of Commons

First reading: November 7 2001 (HC Bill 44)

Second reading: November 27 2001

Standing Committee F

• 1st sitting: December 6 2001 (am)
• 2nd sitting: December 11 2001 (am)
• 3rd sitting: December 11 2001 (pm)
• 4th sitting: December 13 2001 (am)
• 5th sitting: December 13 2001 (pm)
• 6th sitting: December 18 2001 (am)
• 7th sitting: December 18 2001 (pm)
• 8th sitting: January 8 2002 (pm)
• 9th sitting: January 10 2002 (am)
• 10th sitting: January 10 2002 (pm)
• 11th sitting: January 15 2002 (am)
• 12th sitting: January 15 2002 (pm)
• 13th sitting: January 17 2002 (am)
• 14th sitting: January 17 2002 (pm)
• 15th sitting: January 22 2002 (am)
• 16th sitting: January 22 2002 (pm)
• 17th sitting: January 24 2002 (am)

Remaining stages: February 12 2002

House of Lords

First reading: February 13 2002 (HL Bill 54)

Second reading: February 26 2002

Grand Committee

• 1st day: March 13 2002
• 2nd day: March 14 2002
• 3rd day: March 18 2002
• 4th day: March 20 2002
• 5th day: March 21 2002
• 6th day: March 25 2002
• 7th day: March 26 2002
• 8th day: April 11 2002
• 9th day: April 22 2002
• The bill as amended in committee: HL Bill 77

Report stage:

• 1st day: May 30 2002
• 2nd day: June 11 2002
• 3rd day: June 18 2002
• The bill as amended on report: HL Bill 91

Third reading: June 27 2002

House of Commons

Consideration of Lords amendments: July 8 2002

Royal Assent: July 8 2002